Evaluating Active Equity Models for Volatile Markets

As an equity portfolio manager specializing in quantitative strategies, you are evaluating the performance of three different models employed in active equity investing. Each model has a unique methodology and risk-return profile. The models are:

Model A: This model uses a multi-factor approach that includes value, momentum, and quality factors. It operates in a blend style and has been adjusted for transaction costs and market impact.

Model B: This model employs a mean-reversion strategy, primarily focusing on stocks that exhibit extreme price movements relative to their historical averages. It has a narrow focus on a specific sector and relies on higher turnover rates.

Model C: This model utilizes a machine learning algorithm that processes vast amounts of data, including alternative data such as social media sentiment and web traffic trends. It adjusts its portfolio dynamically based on real-time signals.

Given the current market conditions characterized by heightened volatility and rapid technological shifts, which model is likely to outperform in the long term due to its adaptability and depth of analysis?